Vertex (NASDAQ:VERX) vs. Couchbase (NASDAQ:BASE) Critical Contrast

Couchbase (NASDAQ:BASE) and Vertex (NASDAQ:VERX) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Earnings & Valuation

This table compares Couchbase and Vertex”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Couchbase	$198.82 million	4.32	-$80.18 million	($1.64)	-10.41
Vertex	$572.39 million	11.60	-$13.09 million	$0.12	355.83

Vertex has higher revenue and earnings than Couchbase. Couchbase is trading at a lower price-to-earnings ratio than Vertex, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

96.1% of Couchbase shares are held by institutional investors. Comparatively, 59.1% of Vertex shares are held by institutional investors. 16.1% of Couchbase shares are held by insiders. Comparatively, 44.6% of Vertex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Couchbase and Vertex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Couchbase	1	2	12	0	2.73
Vertex	0	4	7	1	2.75

Couchbase presently has a consensus target price of $23.13, indicating a potential upside of 35.52%. Vertex has a consensus target price of $37.30, indicating a potential downside of 12.65%. Given Couchbase’s higher probable upside, equities research analysts plainly believe Couchbase is more favorable than Vertex.

Profitability

This table compares Couchbase and Vertex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Couchbase	-39.51%	-54.84%	-29.84%
Vertex	3.20%	22.32%	6.55%

Risk and Volatility

Couchbase has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Vertex has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Summary

Vertex beats Couchbase on 12 of the 15 factors compared between the two stocks.

About Couchbase

Couchbase, Inc. provides cloud database platform for enterprise applications in the United States and internationally. Its database works in multiple configurations, ranging from cloud to multi- or hybrid-cloud to on-premise environments to the edge. The company offers Couchbase Capella, an automated and secure Database-as-a-Service that simplifies database management by deploying, managing, and operating Couchbase Server across cloud environments; and Couchbase Server, a multi-service NoSQL database, which provides SQL-compatible query language and SQL++ that allows for a various array of data manipulation functions. It also provides Couchbase Mobile, an embedded NoSQL database for mobile and edge devices that enables an always-on experience with high data availability, even without internet connectivity, as well as synchronization gateway that allows for secure data sync between mobile devices and the backend data store. The company sells its platform through direct sales force and an ecosystem of partners. It serves governments and organizations, as well as enterprises in various industries, including retail and e-commerce, travel and hospitality, financial services and insurance, software and technology, gaming, media and entertainment, and industrials. The company was formerly known as Membase, Inc. and changed its name to Couchbase, Inc. in February 2011. Couchbase, Inc. was incorporated in 2008 and is headquartered in Santa Clara, California.

About Vertex

Vertex, Inc., together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools. It provides implementation services, such as configuration, data migration and implementation, and support and training; and managed services, including tax return preparation, filing and tax payment, and notice management. The company sells its software products through software licenses and software as a service subscription. Vertex, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.